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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question

Transcribed Image Text:(a) Notes receivable
(b) Accounts receivable
(c) Retained earnings
(d) Sales
(e) Operating expenses
(f) Income taxes payable
a.
b.
Using horizontal analysis, show the percentage change and direction (increase or decrease) from Year 1 to Year 2 with Year 1 as the base year. If an item is impossible to compute, enter a "0" in the percentage box and select "Not
possible to compute" in the narrative box.
C.
d.
e.
f.
X %
X %
X %
X %
X %
Year 2
X %
$25,500
$30,000
106,200
90,000
77,000
70,000
654,000 600,000
160,000
200,000
28,000
20,000
Decrease
Increase
Increase
Increase
Year 1
Decrease
Increase
✓
✓
✓
✓
Expert Solution
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